Good morning investors! Stocks have had a good year so far but some say the last quarter may bring trouble.
Today we cover:
Wholesale prices surge
The AI challenge
Good money tips
📊 Economy and News
Wholesale Prices Surge 6.3% in September, Biggest Jump Since 2022
Wholesale prices jumped sharply in September, with the producer price index rising 1.3% on the month and 6.3% year over year—the largest annual gain since late 2022. Both figures exceeded economist forecasts of 0.6% monthly and 5.5% annually.
Energy costs, driven by the Middle East conflict and curtailed oil supply, accounted for much of the increase. Core PPI, which excludes food and energy, still rose 0.7% monthly and 5% annually. Nearly half of the rise in processed goods for immediate demand was linked to higher diesel prices, signaling broader spillover.
The hotter PPI follows Wednesday’s consumer price index, which rose 0.6% monthly and 3.7% annually (also above expectations). Retail sales grew 0.8% in September, though growth slowed excluding autos and gas stations, suggesting high fuel costs are prompting consumers to cut back elsewhere.
The data has lifted odds that the Federal Reserve will raise rates at its late-October meeting, with futures now pricing a nearly 34% chance of a hike (up from under 18% a week earlier) and about 90% odds of at least one increase by year-end.
Global hits:
India says first phase of US trade deal finalized as September unemployment rate sits at 5%.
China Q3 growth set to pick up on stimulus, keeping 2026 goal within reach: Reuters poll.
BoE to raise rates to 4% in November, but economists narrowly expect hold from there.
Greece’s IOBE keeps 2026 growth forecast at 1.8%, cuts 2027 view.
Reminder: US jobless claims edge up to 199,000 in latest week. Elsewhere, U.S. 10-year Treasury yield sees worst day in over a year as bonds rally. Lastly, Harvard University’s endowment grew 27.1% in fiscal year 2026.
👨 Sponsored
Every question puts a server facility to work on the grid.
Big tech now signs agreements covering entire power plants.
An American energy company already serves that demand.
Its name reaches you by text from Good Morning Alerts.
📈 Stocks
S&P 500 7,744.06 (+0.32%)
DJIA 52,177.69 (+1.07%)
NASDAQ 26,713.02 (+0.077%)
BRENT CRUDE 105.09 (-0.11%)
* Prices as of Oct 15th, 12:20 AM UTC
AI Stocks Plunge as Funding Fears and Debt Worries Mount
Global AI and semiconductor stocks continued their sharp sell-off, with the 20 most valuable names in the sector losing more than $1 trillion in market value this week.
Nvidia fell 1.84%, AMD dropped 1.5%, Intel lost about 2.8%, and Dell sank 6.8%. Asian chipmakers were hit harder: SK Hynix plunged more than 10%, Samsung Electronics fell 8.7%, SoftBank Group tumbled 7.9%, and Advantest dropped nearly 14%. In Europe, ASM International declined 7% and Infineon shed 5%.
The pressure stems from rising concerns that higher borrowing costs will strain the massive capital spending needed for AI infrastructure. Investors are also wary of potential memory-chip oversupply later this decade and intensifying competition, including from China’s CXMT.
Neocloud provider CoreWeave has become a focal point of the stress. Yields on its 2031 bonds climbed above 15%, and five-year credit-default-swap spreads briefly exceeded 1,140 basis points—levels typically seen as distressed. The company carries more than $51 billion in debt and obligations.
Its stock recovered to close up 5.9% after Nvidia CEO Jensen Huang said he saw no need for Nvidia to backstop the firm and that CoreWeave’s cost of capital was actually falling. CEO Mike Intrator said the market was acting irrationally and pointed to a backlog of more than $100 billion, largely with investment-grade customers.
Analysts note that demand for AI computing remains strong, but financing costs and balance-sheet risks are now the main worries. Some see the pullback as a buying opportunity if underlying demand holds; others warn that credit stress could spread further across the AI ecosystem.
Interesting: Amazon launches new Bee ‘personal AI’ devices that listen to conversations.
Porsche reveals Mission S concept car that previews new design identity.
Tesla plans to reveal its next-generation Roadster from a SpaceX test site in Texas..
Surprising: Nvidia and Cisco confirm multimillion-dollar donations to Trump’s White House ballroom. In other news, Apple and Meta team up to make Muse AI model run on Mac computers. Furthermore, KFC to switch to Coca-Cola beverages in U.S. restaurants for the first time in decades.
💵 Personal Finance
Practical Money Lessons That Still Work Today
Many popular personal-finance rules feel timeless, but the most useful approaches are often simpler and more flexible than modern advice suggests. Here’s how to apply a few proven ideas in practical ways.
Make housing more affordable with flexible choices
If buying or renting feels out of reach, consider options that stretch your dollars:
Be willing to relocate to areas with better prices or job opportunities when it makes sense.
Share space—take on a roommate, rent out a spare room, or house-share—to cut costs significantly.
Treating space as something you can monetize or share often eases pressure faster than waiting for the perfect solo setup.
Build wealth the way most people actually have
While low-cost index funds and compounding are excellent tools available today, they’re not the only path. Focus on what you can control:
Develop valuable skills or grow a side business that generates income.
Put money into assets you understand well, such as a home, career advancement, or a small venture.
Use diversified investing as a reliable long-term supplement rather than the sole strategy.
Concentrate effort where you have an edge, then let compounding work on the surplus.
Keep money management simple
Skip complicated category budgets if they feel overwhelming. Try a reverse approach instead:
Cover essential bills and needs first.
Automatically set aside money for goals (emergency fund, retirement, big purchases).
Spend whatever remains freely without tracking every coffee or subscription.
This “pay yourself first, then live on the rest” method has helped people stay on track for generations without endless spreadsheets.
The common thread: stay flexible, focus on actions you can take now, and avoid rigid rules that don’t fit your real life. Small, consistent moves in housing, earning, and simple prioritization usually matter more than perfect systems.
💰 Be a Better Investor
“Pundits forecast not because they know, but because they are asked.”
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT ADVICE. Morning Download products and services are offered for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation or be relied upon as personalized financial advice. We are not financial advisors and cannot give personalized advice. There is a risk of loss in all trading, and you may lose some or all of your original investment. Results presented are not typical. This message may contain paid advertisements, or affiliate links. This content is for educational purposes only.
Please review the full risk disclaimer: MorningDownload.com/terms-of-use